Netflix can't afford a streaming content war

Netflix's move to rebrand its DVD-by-mail service as Qwikster sets that business up for a spin-off and underscores Netflix's longtime desire to go all-in on streaming. But it's a high-risk strategy: Streaming video has become a very expensive game -- and Netflix's rivals have much fatter wallets.

Studios now want millions more for the content they're providing, and if Netflix won't pay them what they want, they can take their business to a competing service. Google, Amazon, Microsoft and others are all looking to expand their content catalogs, and each has billions on hand to play with. The big wildcard right now is Hulu, which is on the block and expected to fetch a sale price in the $1 billion to $2 billion range. All of the big players are circling, drawn to Hulu's catalog of current TV series. A Hulu buyer could potentially score exclusive streaming TV rights from current Hulu owners Disney, NBC and Fox, Crockett said. That would block Netflix's ability to ink its own TV deals with those studios.